The Government of Canada has signed a new audiovisual coproduction treaty with the Grand Duchy of Luxembourg.

The bilateral treaty, which allows producers in both countries to tap national subsidies, was signed by Canada’s Ambassador to the Kingdom of Belgium and to the Grand Duchy of Luxembourg Olivier Nicoloff and Film Fund Luxembourg’s managing director Guy Daleiden, the Ministry of Canadian Heritage announced this week. 

Once in force, the new treaty will replace the previous coproduction agreement from 1996. In addition to updating the treaty to account for innovations in digital production and distribution techs, the new agreement aims to encourage more coproduction activity by lowering the minimum financial contribution producers are required to put toward a project’s total budget to 15% from 20%.

Despite being in place since 1996, the first official Canada/Luxembourg copro was Lea Pool’s 2010 drama La Derniere Fugue. More recently, Toronto’s Aircraft Pictures, Ireland’s Cartoon Saloon and Luxembourg’s Melusine Productions began production on The Breadwinner.

All told, Canada has now signed copro treaties with 55 countries, including, most recently, India in 2014.